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Buy Tamil Nadu Newsprint; tgt Rs 165: Sushil Finance
Sushil Finance is bullish on Tamil Nadu Newsprint and Papers and has recommended buy rating on the stock with a target of Rs 165 in its July 20, 2010 research report.
Sushil Finance is bullish on Tamil Nadu Newsprint and Papers and has recommended buy rating on the stock with a target of Rs 165 in its July 20, 2010 research report.
"Tamil Nadu Newsprint and Papers expects to complete its capacity expansion program (2.45 lakh MTPA to 4 lakh MTPA) by Sept. 2010. In FY10, its revenues fell 2.5% YoY but its APAT grew by 32.8% YoY with an EPS of Rs.17.1. Going forward, with increased capacities & better price realization, we expect its revenues and APAT to grow by 24.6% & 14.4%, respectively in FY11E; and by 24.1% & 20.8%, respectively in FY12E. At the CMP of Rs 119, the stock is available at an attractive valuation of 5.1x its FY12E earnings of Rs 23.6, also offering a dividend yield of 4%. We initiate our coverage on the stock with a buy Rating and a target price of Rs 165 (7x FY12E Earnings)," says Sushil Finance research report.
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